In the wake of our recent blog on Trump Entertainment Resorts filing for Chapter 11 bankruptcy, we thought it would be a good time to answer some commonly asked questions about this type of bankruptcy, which is usually pursued by businesses.
While the responses and information provided in this blog series are helpful, don’t hesitate to contact Denver, Colorado Bankruptcy Lawyer Jon B. Clarke when you are ready for answers specific to you and your business’ financial matters.
Q – What is Chapter 11 bankruptcy?
A – Chapter 11 bankruptcy is an option for small business owners and corporations alike that are struggling with a massive amount of debt and are looking for relief.
Unlike other business bankruptcy options, Chapter 11 bankruptcy effectively allows a business to resolve its debt issues, restructure itself and continue to remain open. In other words, businesses that want to continue their operations and not close down in order to resolve their debt issues through bankruptcy can file for Chapter 11.
Q – Are Chapter 11 cases different for small business debtors versus larger corporations?
A – They can be. While Chapter 11 cases tend to get a lot of publicity when large corporations like General Motors or United Airlines files for this type of bankruptcy, the way that these cases proceed for smaller business can be very different in order to facilitate the resolution of less complicated cases.
It’s important to note that, in order to be eligible for these fast-tracked small business debtor Chapter 11 bankruptcy cases, a business owner or entity must meet the following eligibility requirements (as outlined in the Bankruptcy Code):
- Be engaged in commercial activities (i.e., be an operating business)
- Must have liabilities that total no more than $2,490,925 (as of September 2014).
Because totaling the amount of a business’ various debts and liabilities can be a complicated endeavor, it’s crucial to consult with Denver Bankruptcy Attorney Jon B. Clarke for a thorough assessment of your case, as well as professional advice regarding your business’ best options for resolving its financial issues.
We will continue to answer questions about Chapter 11 bankruptcy cases in a few upcoming parts of this blog series – be sure to check them out!
Denver, Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
Is your business struggling with massive debt? Or do you need help getting out from under If seemingly insurmountable debt? If so, contact the trusted Denver, Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C.
For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our clients’ cases are resolved as favorably and efficiently as possible.
Contact Us Today
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us using the contact form on this page.